Arabia Group for Investment (AGI) is still negotiating with the Ministry of Housing and Urban Communities regarding the establishment of the Sun City compound in 6th of October City, according to the company’s chairman, Tarek Shoukry.
Shoukry added that the cost of the project will amount to EGP 3bn.
In a statement to the Daily New Egypt, Shoukry said that the project will be implemented through obtaining funding from banks and partnerships with foreign and Arab real estate developers.
“The project aims for an integrated development in the region, where many tourist resources would be available,” said Shoukry. He added that the city will provide 1,000 hotel rooms, in addition to commercial, service and administrative communities that aim to diversify Egyptian tourism services.
Shoukry refused to declare which banks they are considering negotiating with in order to receive a loan, noting that the project is still in the negotiation phase with the Ministry of Housing.
The director of the company expects that the upcoming period will witness great development in the field as a result of the political stability in Egypt.
Shoukry declared that due to the price increase of construction equipment and land, the negative impact of the prices jump will not significantly affect the sector.
He justified this by stating that as long as the price increases are in line with economic rate development, which lead to incomes increasing, then the price increase will not negatively affect the sector.
He believes that land price increases will push real estate developers to raise unit prices, which will force the real estate developers to establish partnerships with the state for these lands.
Shoukry criticised the taxes applied by the Ministry of Finance for trading in the stock market, which pushed the company to delay its listing in order to review the negative impacts of the decision.
